AC Propulsion is a San Dimas, California, USA company founded in 1992 by Alan Cocconi, Wally Rippel, and Paul Carosa, that specializes in alternating current-based drivetrain systems for electric vehicles.

[6] The AC-150 has been used in a variety of applications such as the BMW Mini E, Foton Midi taxi and a USPS LLV demo vehicle.

[9] Martin Eberhard and Marc Tarpenning had both taken test drives in the lithium-ion battery powered revision of the AC Propulsion tzero before founding Tesla Motors.

When they declined, in favor of working on their electrified Scion xB called the eBox, Martin Eberhard and Marc Tarpenning incorporated Tesla Motors to pursue the idea of building an electric roadster in the spirit of the tzero.

Tesla then designed and built its own power electronics, motor, and other drivetrain components that incorporated this licensed technology from AC Propulsion.